H.R. 2841 — Putting Trust in Transparency Act

This section states congressional findings that (1) nongovernmental organizations (NGOs) assist in distributing federal resources domestically and abroad; (2) a February 6, 2025, executive memorandum requires review of federal funding to NGOs but not their non-federal sources; (3) non-federal NGO revenue is reported to the Internal Revenue Service via Form 990 Schedule B but not shared government-wide; (4) Article I, Section 8 of the Constitution empowers Congress to regulate taxpayer dollars; (5) NGOs independent of federal funding face limited congressional oversight; and (6) transparency on NGO megadonors is needed for responsible congressional decisions. It expresses the sense of Congress that any NGO receiving federal funding acts on behalf of the U.S. government and is subject to the same fiscal oversight requirements as executive agencies.

This section requires the IRS to publicly disclose unredacted Schedule B of Form 990 (i.e., names, zip codes, and contribution amounts of contributors giving $5,000 or more) for 501(c) tax-exempt organizations receiving federal funding during the taxable year, within 60 days of processing the form. It mandates filing of such schedules by these organizations and automatically revokes tax-exempt status for failure to file after a 60-day notice, while extending existing reinstatement procedures (including retroactive reinstatement if cause shown) to such cases and requiring publication of a list of revoked organizations. The requirements apply to returns for taxable years beginning after enactment.